Senator Nelson Seeks to Help Cities Maximize Drilling Income

The Texas Senate has approved SB 894 by Senator Nelson to expand investment opportunities for cities in the Barnett Shale region. Specifically, it makes non-tax revenue derived from natural gas wells and mineral leases subject to the Texas Trust Code, which allows more flexible investing, rather than the more restrictive Texas Public Funds Investment Act. "In the Barnett Shale region, many cities are receiving royalties, leases, permit fees and other non-tax revenue in exchange for drilling rights," Senator Nelson said. "These are short-term windfalls that cities would like to invest in long-term strategies that are currently prohibited under the Texas Public Funds Investment Act." The bill now moves to the House for further consideration.